Salesforce has confirmed it will acquire Mulesoft in a deal valuing the network software maker at $6.5bn. The acquisition will provide Salesforce with Mulesoft’s expertise in developing networks that connect applications, data and devices, which it will then use to power its own cloud-based portfolio. Salesforce has offered $36 in cash and 0.0711 of its own shares for each Mulesoft share, working out to a price of $44.89, or a premium of 36 per cent to the target’s closing price on March 19. Mulesoft shares closed 27.2 per cent higher today to $42 following media reports Salesforce was in advanced talks with the company. They gained a further 4.4 per cent to $43.81 in after-hours trade on the Nasdaq. Confirmation of the deal came after closing bell. Salesforce shares closed 0.1 per cent higher to $125.12, but were down 2.3 per cent in after-hours trade.

Marc Benioff, Salesforce chief executive, said: “Together, Salesforce and Mulesoft will enable customers to connect all of the information throughout their enterprise across all public and private clouds and data sources — radically enhancing innovation.” Greg Shott, his opposite number at Mulesoft, said: “With the full power of Salesforce behind us, we have a tremendous opportunity to realise our vision of the application network even faster and at scale.” Mulesoft counts Coca-Cola, Barclays and Unilever among its biggest clients. The cash component of the acquisition is expected to be funded via existing cash on Salesforce’s balance sheet, with about $3bn expected to come from borrowing.